Surprises in agriculture despite Corona: Recovery of agricultural loans increased

The epidemic of coronavirus hit the agricultural sector like every other sector of the country in a financial year. As a result, the farmers were very reluctant to cultivate crops with agricultural loans. Due to this, the target of disbursement of agricultural credit was not met in the last financial year. The outbreak of agricultural credit was largely due to the Corona outbreak.

However, in the first eight months of the current financial year (July-February), the disbursement of agricultural credit has increased significantly. Commercial banks have disbursed agricultural loans worth Tk 16,180 crore in the last 8 months. The amount disbursed during the same period of the previous financial year was Tk 15,092 crore. In other words, loan disbursement has increased over the same period of the previous financial year.

Meanwhile, the collection of agricultural loans has also increased in Corona. At this time 17 thousand 492 crore taka has been collected. 15,508 crore Tk was collected under the normal situation of the previous year. In other words, 1,984 crore more has been collected in the last eight months than the same period last year. Bangladesh Bank’s updated report found that out of the total loans disbursed to the agriculture sector in the first eight months of the financial year, state-owned banks disbursed Tk 7,331 crore. Private and foreign-owned banks have disbursed Tk 8,848 crore.

In the current financial year (2020-21), the banks have allocated a loan of Tk 26,292 crore. Which is 8.99 percent more than last financial year. Among the announced targets, state-owned commercial banks will disburse loans of Tk 11,045 crore and private and foreign commercial banks have set a target of lending Tk 15,247 crore.

Although the outbreak of corona had a huge impact on all parts of the country, the country’s agricultural production was still active. So the farmers needed more loans in the epidemic. But the banks did not give them timely loan assistance. As a result, for the first time, the target of disbursing agricultural credit failed to be achieved. After that, starting from the upper echelons of the government, the banks started distributing agricultural loans again under the pressure of Bangladesh Bank.

Sunbd/NJ